CCPA nod for cash subsidy on domestic LPG

New Delhi: The Cabinet Committee on Political Affairs today gave its clearance to transfer of cash subsidy to domestic cooking gas (LPG) consumers under its ambitious Direct Benefit Transfer (DBT) scheme covering 20 districts by May 15.

The clearance to the scheme, to be launched on a pilot basis, came at the CCPA meeting.

LPG consumers will get about Rs 4,000 per annum in cash from the government and they will have to then buy LPG at market price of Rs 901.50 per 14.2-kg cylinder.

Currently, each consumer is entitled to get 9 cylinders of 14.2-kg each at subsidised price of Rs 410.50. On each of these cylinders, government bears a subsidy Rs 435.

Consumers in the select districts will get the subsidy amount transfered into their bank accounts. Once they get the subsidy, they will have to buy LPG at market price.

"The subsidy amount will be transferred to consumers directly into their bank accounts. With the subsidy going directly, there will be only one price at which cylinders will be sold at a dealer's shop," the release said.

DBT, it added, will eliminate all ghost connections and diversion of cylinders.

Earlier on April 5, the decision to roll out the DBT on LPG cylinders in a phased manner was taken at a high-powered meeting headed by Prime Minister Singh.

"There will be a phased roll out beginning with one district and expanding to 20 districts by May 15, 2013. Roll out will cover more districts as Aadhaar enrolment expands," an official release had said.

There are about 14 crore LPG consumers in the country.

The government has already capped the number of subsidised cylinders at six per household per year and beyond that a consumer has to pay the market price.